Bill Livingstone
Headquarters, Washington, D.C.
(Phone: 202/453-1898)
August 28, 1992
RELEASE: 92-137
GOLDIN ANNOUNCES MORE STEPS TO HELP SMALL BUSINESS
NASA Administrator Daniel S. Goldin has announced that
he will upgrade the position of Small and Disadvantaged
Business Director to Assistant Administrator, equal to
directors of program and administrative offices.
Goldin called the decision "a strong signal" in a
series of moves to insure that the nation's small firms,
including those owned by members of minorities and women,
win a larger share of NASA contracts. He made the
announcement at a small business conference in Nashua, N.H.
"In the past, we have focused much of our attention on
working with the giant aerospace companies with the big
hardware contracts and comparatively little on working with
small business," Goldin said.
New Orientation
"We must change our orientation," he declared, stating
that NASA has begun the process through a series of
procurement initiatives.
One of the most important changes, Goldin said, is an
action to reduce drastically the amount of paperwork and
other administrative tasks now required to win smaller
contracts.
"We are looking at 10-page requests for proposals and
contracts versus 90-to-100 page documents," Goldin said.
The biggest change to help small businesses could come
in mid-
range procurements between $25,000 and $500,000, Goldin
said. Although they represent only 15 percent of NASA's
contract dollar, they account for more than 80 percent of
the procurement actions.
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Other Steps Outlined
Other steps Goldin has directed the agency to take to
bolster awards to small firms include:
o Requiring prime contractors to increase the
percentage of subcontracts with small and disadvantaged
businesses (SDBs).
o Establishing a firm agency percentage for SDB awards
in competitive procurements instead of a mere goal.
o Making subcontracting to small firms an important
evaluation factor in source selection.
o Rewarding primes that exceed their subcontracting
goals.
o Establishing a "Minority Business Resource Advisory
Committee" within NASA to help SDBs deal with the agency.
o Pursuing statutory authority to allow the agency to
make SDB set-asides.
Obstacles Must Come Down
"NASA must take down the obstacles that discourage so
many small businesses from engaging in government
contracting, " Goldin said. "We must make our requirements
and our contracting process more accessible. We cannot bury
you in forms, certifications, contract clauses and reporting
requirements."
Goldin stated that NASA made direct awards to small
firms of $870 million in fiscal year 1991, while another
$1.4 billion flowed to small firms through subcontracting.
"We are convinced we can do more," he declared.
NASA's Kennedy Space Center (KSC), Fla.,currently is
evaluating proposals for a $2.7 billion base operations
contract and has declared that 30 percent of this must be
subcontracted to small, disadvantaged or women-owned
businesses.
Recently, KSC selected a minority-owned firm for a $75
million contract with options up to $150 million.
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High-Tech Activities
"The contract is not for routine support services,"
Goldin noted. "It is for applied research and technology,
including tasks involving telerobotics and development of a
highly sensitive spectrometer to detect hazardous gas."
The Marshall Space Flight Center in Huntsville, Ala.,
expects to award a $35 million contract to a minority firm
in late September, he said.
Goldin said that small firms have been great sources of
innovation for NASA. He disclosed that a recent recipient
of a NASA Small Business Innovative Research contract had
developed "three dimensional packaging technology" for
integrated circuit dies.
"This may ultimately lead to a sugar cube sized
personal computer," Goldin said. "That company is now
working with IBM to develop this product for the commercial
marketplace."
NASA's Office of Small & Disadvantaged Business
Utilization is headed by Eugene D. Rosen, who has the title
of Director.
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